tag:blogger.com,1999:blog-35442277627285676252024-03-13T16:30:33.948-07:00Just Write A Check...Paying back debts, one check at a time.Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.comBlogger103125tag:blogger.com,1999:blog-3544227762728567625.post-80115123760143266262011-04-14T15:22:00.000-07:002011-04-14T15:37:18.227-07:00Lazy Pays WellA few years ago, I was in favor of most of the low-income tax breaks and programs. I volunteered with programs that served low-income families, and saw how much those programs helped.<div><br /></div><div>Lately I'm much more cynical. It bothers me that I work a full-time job, and have to pay to subsidize the "lazy" lifestyle choices of others. We have friends and family who have decided to have one person stay at home (some with children, some without), and who live on a single income. </div><div><br /></div><div>Because of that, they fall below the cut off for many programs. They qualify for earned income tax credits, several state tax credits (for helping offset housing & utility costs), food benefits (food stamps and WIC), and state-subsidized healthcare. </div><div><br /></div><div>At tax time, they are getting tax credit refunds of $5-10k! Meanwhile, we're having to pay in way more than that, and that's after working hard all year. </div><div><br /></div><div>In some ways, it makes me want to save up and pay off everything (house & all), beef up the retirement account, and then quit my job. Without any bills, we'd be able to comfortably live on Hubby's income, and we'd also qualify for many of the tax credits and programs. Plus I'd be able to do whatever I wanted with my time: sleeping in, volunteering, reading, exercising. We'd save money by not having the additional vehicle expenses relating to commuting, not having to maintain a professional wardrobe & continuing education expenses, I'd be able to coupon & shop for grocery sales more aggressively, and I'd be able to trim other expenses (like eating out) from our budget (because I wouldn't be too tired to cook). </div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com1tag:blogger.com,1999:blog-3544227762728567625.post-65798400411778029712011-04-13T06:31:00.000-07:002011-04-13T07:03:02.081-07:00Maintaining momentumHubby & I are having a difficult time maintaining momentum with the debt repayment. <div><br /></div><div>While we haven't added to credit card balance, it's been going down very slowly. It seems like we'll charge $250 (for things like gas or books) and then we'll pay off $500. At our current rate, that last $5,000 is going to be around for a long time! In reality, we're hoping that it'll be gone by the end of the year.</div><div><br /></div><div>We have been able to save over $5k for a down payment on the new car... but the new car will only add to our total debt. We'll have to budget for additional monthly payments of $400/mo, which will definitely slow down the credit cards. </div><div><br /></div><div>On the student loans, we've been making the minimum payments on one and have deferred the other. We currently have over $47,000 - I know that's not going to get paid off with only $100/mo being applied towards principal. </div><div><br /></div><div>We've basically diverted all the extra money in our budget towards miscellaneous items. About 40% is "blow money", 40% is short-term savings (repairs & renovations), and 20% is entertainment (eating out & vacation). </div><div><br /></div><div>If we really focused and stayed "gazelle intense", we'd be able to knock out the credit card AND other car loan in maybe 6 months time. Instead it'll take a year. The other debts - the future new car loan, student loans, and 2nd mortgage - will end up taking 10+ years (when they could be gone in 5). I know it, I see it in black and white, but I just don't care anymore. </div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-17519536000155119182011-03-11T16:18:00.000-08:002011-03-11T16:54:23.580-08:00Strategic Mortgage DefaultOver the past few years, a few couples that we know have strategically defaulted on their mortgages. These are people who could afford to make their mortgage payments, but who owed more on the house than they could sell it for, so they simply stopped paying. They saved the money that they had been paying, allowed the mortgage to fall behind, unsuccessfully tried to sell the house as a short sale, and ultimately had the house foreclosed. What happened after that varies- one couple took out a mortgage and bought a new house at the same time, before the delinquency/foreclosure hit their credit reports, another couple moved into a rental home, and another moved into an apartment. <div><br /></div><div>I'm secretly hoping that all of them will get sued by the bank for the difference between what they owed and what the house sold for at auction. I'm incredibly annoyed by the fact that each of them seems to have gotten out of it basically unscathed. Buy a house when the market is high, and then simply walk away when values plummet. Sure, their credit scores surely were lowered, which probably translates into slightly higher insurance premiums, deposits, and interest rates - but they've each walked away from at least $50k in "underwater" loan balances. </div><div><br /></div><div>One of the couples originally bought a foreclosed house a few years back, at an incredible price. At 2007 fair market value, they bought a $225k house for only $135k. They made a few renovations and improvements, then did a cash-out refi... getting over $60k in cash, and using it to pay off personal student/auto loans. Then, after the housing market tanked, they decided they wanted to move but discovered that their home was only worth about $150k. They stopped paying on the mortgage, allowing it to fall behind. When the bank foreclosed, they owed just shy of $200k on the loan- and had used the "equity" to completely pay off all their other debt. Ethically, morally, they see absolutely nothing wrong with this situation. </div><div><br /></div><div>Compared to the "average" person who can afford their mortgage payments but simply don't want to pay any more, and decide to give back the house to the bank, this particular situation seems far worse to me. They got a huge financial gain out of it, by getting their other loans paid off completely! Had they not refinanced to pay off the other loans, they would still have had equity in the house, and been able to sell it. It is a horrible abuse of the system, and tremendously unfair to everyone else who continues to pay their debts. </div><div><br /></div><div>For that reason, I truly hope that the banks chase after these people, and everyone else across the country who has walked away from their homes but who could still afford them. I would like to see the bank sue them for the difference, to have a judgment placed against them so that they have to repay the extra money that they've taken out. </div><div><br /></div><div>I'm incredibly frustrated by stories like this, yet I know several people who have done it. I wish I could just hand our house back to the bank, and just get rid of the mortgage entirely, with no consequences! I'd be happy renting a house for a few years, if it meant being free of all the house debt and never-ending maintenance & repair bills. We fall into the large group of homeowners who owe far more on the mortgage than our home is currently worth, but wouldn't dream of just not paying on it just to give us more money to indulge in fun stuff.</div><div><br /></div><div>It will be several years before we will be able to save up enough money to sell the house and pay off the mortgage (at even then, it'll be at a loss of $50-100k over what we paid!). In the meantime, we'll continue to pay more (due to higher interest rates, maintenance, etc) than those who walked away and are currently renting. Not to mention, we still have our other loans (student, auto, etc) that we'll be paying on for several years. </div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /><div><br /></div><div><br /></div></div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com1tag:blogger.com,1999:blog-3544227762728567625.post-25740175868003712762011-03-09T15:11:00.001-08:002011-03-09T15:34:59.193-08:00No ProgressIn the past month, we haven't really made any more financial progress. <div><br /></div><div>We spent a lot more on vacation than we had budgeted. We delayed in booking the trip, so prices went up a bit over what we had expected. We also splurged a bit while we were there. We had set aside $1000 for travel & accommodations, and had planned to spend an additional $500 while there. We ended up spending close to $2500 in total. We charged everything, and we'll pay off the trip this month.</div><div><br /></div><div>We had a few extra bills this past month, including our annual homeowners association dues. The combination of vacation and the extra bills meant that we only paid the minimums on the remaining credit card debt. </div><div><br /></div><div>We're still saving up for the down payment on the new car, setting money aside for car insurance on the new car, saving up for more home renovations, continuing to pay down credit card debt. Although I'd like to continue building up our emergency fund as well, and pay extra on other debts (car, student loan, mortgage), there isn't enough to do any of those until at least mid-summer. </div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-85170604957276693782011-01-30T17:49:00.001-08:002011-01-30T18:05:53.323-08:00Bleeding MoneyNow that we've got plenty of breathing room each month, and the credit cards are at a point that we could pay them off entirely (if we wiped out our emergency fund, that is), we haven't been very focused at staying on track. We've been eating out a lot (at least 3-4 times/week, usually a lot more), I haven't been clipping or using grocery coupons, and we've allowed our miscellaneous spending to creep up. <div><br /></div><div>Hubby also decided to buy a new car, it's been ordered but won't come in for a month or so. Although he could pay off the remaining credit cards, he's decided to instead focus on putting as much as possible for a down payment ($3000+), that way the monthly payments will be less. I'm not sure of the final price, but it will be in the $25k range. It'll be financed over 5 years, so we'll have payments of roughly $400/month. </div><div><br /></div><div>Our other car's payments are $350/month, with almost a year and a half left. </div><div><br /></div><div>I hate that we're taking out that much more debt, especially when the existing car was only just paid off and still runs fine... but the reality is that we're wasting at least that much in eating out and other non-frugal spending each month too. </div><div><br /></div><div>At any rate, we haven't made much headway lately. In fact, we "reallocated" $4k from the short-term savings/emergency fund to put towards the down payment and an upcoming Florida vacation. </div><div><br /></div><div>We're currently left with $6k in savings, which is a healthy start but nowhere near where our emergency fund should be. </div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com3tag:blogger.com,1999:blog-3544227762728567625.post-74690945601424211292010-12-21T15:07:00.000-08:002010-12-21T15:30:41.017-08:00Budget for 2011Starting in February, Hubby and I are going to switch to a new budget. So far we've just been splitting our "extra" money, using about half to pay down credit cards and the other half to stash in emergency savings. <div><br /></div><div>With our new budget, we're going to set aside money for several short-term savings goals, as well as to regularly save for non-monthly bills (like car insurance). It means hitting pause on the emergency fund, but overall it should be a better system.</div><div><br /></div><div>Here are our anticipated categories & savings amounts, per month:</div><div>Vacation - $200</div><div>Car insurance - $210</div><div>House (maintenance/repairs) - $300</div><div>Mortgage (principal reduction) - $800</div><div><br /></div><div>It's great to have so much "discretionary" income in our budget, it really makes it so much less stressful to know that we have a bit of a cushion to absorb unexpected items. Our immediate goals are to finish paying off credit cards (currently around $7k) and then to pay off the second mortgage. However, it'll probably take about 3 years.</div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com1tag:blogger.com,1999:blog-3544227762728567625.post-57398268413370225542010-11-09T04:53:00.000-08:002010-11-09T05:05:59.430-08:00Fall UpdatesI updated the progress bars on the right side again, it feels so good to see the credit cards decreasing so much! <div><br /></div><div>As soon as some of the pending payments clear, we'll be under $10k in outstanding balance on the credit cards! And I know that seems like a lot, but it's nothing compared to the nearly $50k that we once owed a few years ago. We're lucky in that we never quite got to the point that we were desperate, we were always able to pay our bills and the minimum payments - but we also started paying off back when minimum payments were only 1-2% of the balance (so on $50k debt, we were only paying like $600/mo), and our interest rates were mostly fixed rate balance transfers of 0-3% APR. If we'd waited a couple years to start paying it off more aggressively (and stop buying more stuff on credit!), we would have been in a rough situation. It seems like those great balance transfer offers all but disappeared, and minimum payments increased to 5% of the balance - so our monthly payments with interest would have been easily $3000/mo! When all that hit, we still had to absorb payments of half that, which was tough but fortunately still possible for us. </div><div><br /></div><div>One of the cars is completely paid off, so we're down to a single car loan! I wish we could make the paid-off car last a few more years, and use the would-be car payment to pay off more debts and to save up for a new car, but it's my husband's car and he wants to get a new one next year... so I'm just hoping the credit cards will be paid off completely before the new car (loan) comes.</div><div><br /></div><div><br /></div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com1tag:blogger.com,1999:blog-3544227762728567625.post-66185123959441440372010-09-11T06:29:00.000-07:002010-09-11T06:48:54.522-07:00House Renovations, 2nd Mortgage, or Emergency Fund?Although DH still has quite a hefty chunk of credit card debt, all of mine is gone (and has stayed that way!). That has freed up $1200+ each month that can be put towards other expenses and goals. <div><br /></div><div>While I'd love to see all of our credit cards paid off completely, I've learned that I should let DH pay his own debts off. Although he wants to be free of them, he is also still willing to splurge on purchases with the intent of paying them off quickly... but it doesn't seem to work out that way. Those purchases accumulate, and by the end of the month are often $1-2k! We've paid off some of these 'smaller' balance cards several times over! </div><div><br /></div><div>So instead I'll be putting the extra money elsewhere. I've been debating whether to add it to our emergency fund (currently $5000), set aside money for future house renovations, or put it towards paying off our second mortgage. The debt-freak in me wants to pay off our second mortgage as aggressively as possible, but strategically, it would probably be better to have that money in a liquid account. </div><div><br /></div><div>One of my options would be to set up a savings goal through SmartyPig, using it to set aside money for the sole purpose of paying off the second mortgage. It wouldn't make much sense to have 20k+ sitting there waiting to be sent off, but I could build up a few thousand dollars in there (sort of a dual purpose, secondary emergency fund & mortgage principal reduction), then start sending all the extra money to the mortgage company.</div><div><br /></div><div>How do other people balance paying off large long-term debts (like mortgages) with emergency savings? Our emergency fund represents a bit more than 1 month, but if only one of us lost our job (and could collect unemployment), we could likely last 6+ months. </div><div><br /></div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-91868435174754757992010-08-22T09:54:00.000-07:002010-08-22T12:10:21.397-07:00Cut in PayIn the upcoming months, I'll likely be asked to start taking furlough days. In my case, the furlough days will be unpaid days, sort of like a temporary layoff, but will probably be structured as a day off every so many work days.<div><br /></div><div>I don't yet know the details, but it'll most likely represent at least a 20% pay cut. And realistically, it'll be closer to 30%, because I'll lose overtime pay as well. </div><div><br /></div><div>We're trying to watch our spending a bit more, cutting back on things we don't really need. On the home improvement front, we'll only be spending money to complete projects that we've already started, or critical maintenance items - but no new projects. </div><div><br /></div><div><br /></div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-84850689842921024852010-08-02T16:01:00.000-07:002010-08-02T16:46:29.168-07:00Paying in Cash?Over the past few years, we've asked for a cash discount on a few larger purchases. <div><ol><li>A local building supply store offered us a 4% discount on vinyl siding for paying in cash (which is probably pretty close to the amount they would have had to pay in credit card processing fees). </li><li>A well repair company gave us I think a 3% discount for paying in cash (paying by personal or certified check was the quoted price, cash was a 3% discount, credit was a 3% surcharge).</li><li>A gutter company gave us a 30% discount for paying in cash. </li><li>A landscape company did some tree trimming, and they gave us a 10% cash discount. </li></ol><div><br /></div><div>We're currently in the process of getting estimates for a major project, and I've been inquiring what sort of cash discount they each offer. I don't want to hire someone that's trying to get around paying insurance, taxes, workers comp, etc. - but I think a cash discount is a legitimate thing. It costs companies money to pay credit/debit card processing fees, they are accepting a risk for chargebacks/reversals on credit cards (for fraudulent use on stolen cards), on insufficient funds or stop-payments on personal checks, forged checks, etc. Paying in cash on completion gets the money in their hands, and eliminates the need to potentially send out invoices or spend time on collections. </div><div><br /></div><div>But it's a risk for the homeowner, certainly. On the job where we hired the gutter company, we made sure that everything was on paper. We had an official estimate/quote, we didn't make payment until the work was completed to our satisfaction, we got a receipt and an unconditional waiver of lien. We didn't exchange funds in front of a notary or banker, and we didn't have the waiver of lien notarized, but we also weren't talking about a lot of money either.</div><div><br /></div><div>Now that we're looking at some major work items, I'm not sure whether I want to pay in cash. Truthfully, I hate that the credit card companies make so much money off each time I swipe a card, and ultimately I'm paying for it with higher prices. I'm okay with paying taxes, because the money we pay in taxes means more money spent on public services that ultimately pay our salaries (education, public safety, infrastructure, etc). </div><div><br /></div><div>I'll take a risk on small jobs, but I don't want a shady contractor to try and come back after us for more money down the road. I'm not hiring anyone that I don't trust, but you never really know either. I'm also not entirely sure what the legal ramifications of paying in cash are - cash is legal tender, but I don't know if I would need to get into issuing a 1099-MISC or various IRS forms once I exceed a certain dollar amount. I always get receipts, and once went so far as to get a signed waiver/release of lien, but I don't want to deal with finding a notary and having everything witnessed & notarized. I've also heard conflicting statements on whether paying by check is sufficient to get a cash discount (since they don't have to pay the card processing fees), or if it has to be greenbacks (since checks take longer to clear, and have a greater chance of being fraudulent). And certified checks are somewhere in the middle - but on at least two occasions, certified and personal checks were not accepted for the cash discount price. (At the time, both places told me that there was a cost of doing business for them to accept checks: recording relevant information, bank fees for handling/cashing checks, the time to clear, and the time for an employee to go physically deposit & then withdraw the money)</div><div><br /></div><div>Does anyone have experience with cash discounts for home renovations or other projects? I'd love to hear about your experiences. </div><div><br /></div><div><br /></div></div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-83263333640336640672010-07-17T18:47:00.000-07:002010-07-17T19:00:25.202-07:00Wiping out Savings?My credit cards are finally paid off, completely! Hubby owes about $14,000 on his, but he's making progress on 'em. I had hoped that his would be less than $5k by the new year, but I think a more realistic number will end up being $8k. <div><br /></div><div>One of the first things I did when my card was paid off was to take care of some much-needed house/lawn maintenance. Cost so far is over $800, but I'm glad we did it. I took the money from our emergency savings to cover that, but will replenish it by the end of this month. </div><div><br /></div><div>The problem is that we now would like to redo our driveway, as it's in poor shape and is a bit of an eyesore. When we bought the house, our home inspector told us a new driveway (asphalt) would be about $8000. We'd like concrete, which would be even more. </div><div><br /></div><div>We've debated attempting the driveway as a DIY project, and enlisting the help of some friends/family. Removing our current driveway would be the most difficult part, we're still trying to figure out the best way to dispose of all that material. Neither of us has a CDL, so we'd have to hire a dump truck with driver for probably two full days. I think we could form and pour/finish the concrete without too much difficulty. We might hire out the removal, if we can find someone reputable to do it cheap enough.</div><div><br /></div><div>I will only do the driveway if we can afford to do it cash, I will not go in debt for it. I'd rather not wipe out all of our cash savings, but it is really tempting to get it done so that our house will look nicer though. We can't decide if we should get estimates and just go for it, or if we should hold off (and if so, what's the minimum amount that we need to keep in the emergency fund immediately AFTER making a large purchase/expenditure?)</div><div><br /></div><div>Anyone have experience with replacing a driveway, to know how much it costs? If not, what's your thought on the money side of it? </div><div><br /></div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-67892088592419652532010-06-18T06:46:00.000-07:002010-06-18T06:56:28.691-07:00Almost There!Although we currently owe a combined total of $16,950 on our credit cards, we're almost to a big milestone! By the end of this month, I will have paid off all of my credit card debt, leaving only Hubby's debt left! <div><br /></div><div>My current credit card debt is $2858, while Hubby's is $14,092. </div><div><br /></div><div>Of mine, $482 is for work-related expenses that I will be getting reimbursed for. I've already paid my regular bills this month (student loans, car loan, etc.), so I can use everything that's left in my bank account to pay towards this debt... and I can pay it off completely!!! </div><div><br /></div><div><br /></div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com1tag:blogger.com,1999:blog-3544227762728567625.post-106605440082775942010-05-29T13:58:00.000-07:002010-05-29T14:10:39.817-07:00SmartyPigI finally signed up for an account with <a href="http://www.smartypig.com/">SmartyPig</a>. I heard about it when they first came into existence, but I didn't like some of their terms & conditions. Then they changed their policies, but I was actively in debt-reduction mode and didn't have any extra money to set aside towards savings goals or expenditures. <div><br /></div><div>Now I'm nearing the point of being able to really start saving aggressively. My credit card will be paid off by July 1st, and Hubby's credit cards will be paid off within a year (hopefully sooner!). We delayed some home improvement projects that we had planned on doing this year, to give us more time and money to devote towards other things. </div><div><br /></div><div>I'm sort of testing the waters with SmartyPig, so I only set up one goal initially. Once I get comfortable, and my last credit card is fully paid off, I'll set up a few other goals. </div><div><br /></div><div>Here are our goals for this year:</div><div><ol><li>Vacations/Travel: $3,000. </li><li>Home Improvement: $2,000. </li><li>Fun Money (for big-ticket items): $750</li><li>Car Insurance Renewal: $750</li><li>Savings/2nd Mortgage debt reduction: $7,000</li></ol><div>So has anyone else tried out SmartyPig? Any opinions, reviews, likes/dislikes? <span class="Apple-tab-span" style="white-space:pre"> </span></div></div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-56735006711702831542010-05-02T06:08:00.000-07:002010-05-02T06:16:40.746-07:00Updated Progress BarsI updated all of our debts today, including the progress bars on the right side of the page. <div><br /></div><div>Car Loans: $10,725</div><div>Credit Cards: $17,671</div><div>Student Loans: $49,575</div><div>Mortgage: $164,077</div><div><br /></div><div>That means we paid off $2053 in debt principal (including $171 on the mortgage) during the month of April... which doesn't seem too bad. </div><div><br /></div><div>It's hard to imagine having that much extra money in our bank account each month, if we didn't have to make nearly $800 in car payments, $300+ in student loan payments, etc. </div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-75929308955767638502010-05-01T08:10:00.000-07:002010-05-01T08:20:03.467-07:00Status Report, as of 4/30We made a small dent in credit cards this month:<div><span class="Apple-tab-span" style="white-space:pre"> </span>His: $13,634</div><div><span class="Apple-tab-span" style="white-space:pre"> </span>Hers: $3,899</div><div>TOTAL: $17,533</div><div><br /></div><div>We're waiting on a few refund checks to come - our state income taxes (just over $400), and a refund of overpayment to our mortgage escrow account ($1375). Those will be put straight towards credit cards, and we don't have any major expenses this month - so by early June, we will probably be able to knock out my credit card completely, and have Hubby's paid down to around $12,500! </div><div><br /></div><div>I went on Kelly Blue Book this week to find out how much our cars are worth. One is worth about $6k, the other is around $9k. We currently owe $3k & $8k - so we actually have a tiny bit of equity in each car! We have absolutely no plans to sell either car anytime soon, but it's nice to know that we could get rid of either one and still come out ahead.</div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-55851854051359006572010-04-11T18:09:00.000-07:002010-04-11T18:25:22.471-07:00Slow ProgressThings have been pretty tight lately, and we're not making much headway. Last month I only paid the minimums on my credit cards, so that I could set aside the rest to put towards several upcoming expenses: <div><br /></div><div>We thought we were going to owe $1300 in income taxes to the IRS, due to some errors with our employers withholding too little, but it looks like it'll come out closer to $600 (and we will be getting a refund of close to $500 from state). It will be close to a wash in the end, but we need to front the $600 payment. We still haven't filled out our tax returns, so I don't know the exact amount. </div><div><br /></div><div>Our car insurance renewals are due, for both vehicles, just shy of $1000 for six months. It's predictable (every April & October), but this time our premiums went up. Nothing we did, but the insurance company said that they've had more claims than usual (with most makes/models), and when that happens it means they adjust premiums upward. </div><div><br /></div><div>Hubby spent $700 (he has a $2000 annual budget for discretionary 'big-ticket' items, like a computer), and we've got about $500 in normal springtime house expenses (weed killer, pesticide, grass seed, new mulch & topsoil, minor maintenance items). </div><div><br /></div><div>We also have several smaller expenses over the next few weeks: a new windshield ($300), traffic fines ($125), vet bills ($150), water/sewer ($90), quarterly student loan ($120), wedding gifts ($150), wedding apparel/accessories ($75). </div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-36850050060286377472010-03-05T19:30:00.000-08:002010-03-05T19:51:32.438-08:00Prepay Rent?Earlier today I had a discussion with a friend who is planning to move later this spring. Her & her husband are going to try to negotiate a lower monthly rent amount, and are going to offer to prepay a significant amount (6-12 months) if the landlord or management company will agree to reduce the payment by about $100/mo (roughly 15%). <div><br /></div><div>I think this is a really bad idea; it seems like they would be putting themselves at significant risk with little room for recourse if something bad happened. When I pointed that out, they didn't seem to think it was a problem (or even a real risk). Some specific scenarios that would concern me:</div><div><br /></div><div>- The building catches fire and is damaged or destroyed. Renters insurance only covers the contents, so although the owner would likely have insurance to rebuild, they would need to find another place to stay (and it takes time for insurance claims to get processed). The insurance won't refund prepaid rent, so they would need to get that back from the landlord (possibly by filing suit, if things turn sour). </div><div><br /></div><div>- The building has plumbing or mechanical problems (a pipe freezes then bursts, or the boiler/furnace goes out for several days, etc.) and the building or their apartment unit becomes uninhabitable, they have to trust that the landlord will take care of it expeditiously. </div><div><br /></div><div>- If any repairs are necessary and the landlord isn't responsive, they have no real recourse to make sure the repairs get done. Typically, tenants are legally allowed to hire someone to make repairs (if the landlord doesn't take care of necessary repairs in a timely manner), and then deduct the cost of the repairs (with receipt) from their rent payment. Since they'll have already paid, there's nothing they can do except wait or pay out of pocket. </div><div><br /></div><div>- The biggest concern, if the owner gets into financial trouble and can no longer afford to pay his mortgage. They will have prepaid the rent, but if the landlord stops paying and is foreclosed on or sells to someone else, all they have is a piece of paper saying that they've paid. The new owner may not want to honor that contract, and could make life very difficult and unpleasant for them (which could also go back to the repairs/maintenance thing too). I think, technically, the contract would still be valid, but they may have to go to court (which means attorney & court fees) to have it upheld. And if they tried to recover any of that prepaid rent from the owner, they would likely just be one of many lien holders (that would go away if he/she declared bankruptcy). </div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-81094478006131169902010-03-03T15:29:00.000-08:002010-03-03T15:41:21.808-08:00How much is too much?Hubby & I have been talking through plans for the next year or two. Not surprisingly, we aren't really on the same page. <div><br /></div><div>I want to pay off the credit card debt, then aggressively tackle our 2nd mortgage. While we're working on that, I'd also like to cashflow several home renovation projects. </div><div><br /></div><div>He has his eyes on a brand-new $38,000 sports car (financed, not saving up for a few years to buy it with cash). In the meantime, he's planning to buy some new electronics and go on a few trips. </div><div><br /></div><div>I'm not sure that there's any middle ground that we can both agree on. I think one or both of us will end up not getting what we want. </div><div><br /></div><div><br /></div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com1tag:blogger.com,1999:blog-3544227762728567625.post-45082245444484566522010-02-17T16:33:00.000-08:002010-02-17T16:54:43.651-08:00Swagbucks UpdateI wanted to give an update on my <a href="http://www.swagbucks.com">Swagbucks </a>earnings so far. <div><br /></div><div>I'm still only using Swagbucks as a search engine, I haven't attempted to earn any extra bucks by completing offers or buying stuff. But in just over 3 weeks, I've earned 45 Swagbucks, which is equivalent to a $5 Amazon gift card. The cost for other prizes varies greatly, and there is a complete listing <a href="http://www.swagbucks.com/?cmd=sb-home">here</a> - but the Amazon gift card seems like the most practical overall. Over an entire year, that would be $75-100 in free money just for using the search a handful of times each day. </div><div><br /></div><div>I haven't had anyone else <b><a href="http://www.swagbucks.com/refer/DishesToRiches">sign up using my referral link</a></b> (anyone, please?!), but I think how it works is that I get extra Swagbucks whenever people I refer get them - so I could pretty easily double or triple my rewards. I guess in that regard, it's sort of a Ponzi-type setup.... but it's legit. </div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com0tag:blogger.com,1999:blog-3544227762728567625.post-36192802157332666322010-02-14T08:42:00.001-08:002010-02-14T08:47:17.995-08:00Property Tax AssessmentOur City property tax assessment for 2010 arrived in the mail yesterday, it was quite a surprise. <div><br /></div><div>From 2006 (when we bought the house) to 2009, our "fair market" value dropped by about $24,000. From 2009 to 2010, the fair market value dropped another $34,000. In a little less than four year's time, we have lost nearly $60k in home value, plus the nearly $30k in improvements we made made since moving in. </div><div><br /></div><div>And it's even more frustrating to see what we could buy now for the amount we paid only a few years ago... </div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com1tag:blogger.com,1999:blog-3544227762728567625.post-46294814420981873972010-02-12T09:03:00.000-08:002010-02-12T09:10:26.989-08:002010 BudgetWe have our normal monthly budget, but I also like to be able to project out major expenses for the upcoming year (and thereby I can figure out how much debt we can pay off during the year).<br /><br />Here are the major anticipated expenses, with the amounts we have currently budgeted:<br /><br />Car Insurance, $1600 (half in Mar/Apr, half in Oct)<br />Income Taxes, $800 net (April)<br />Sister's Wedding, $1000 (May)<br />Home Maintenance (repairs, lawn care, small projects), $3000 (May - Sept)<br />Kitchen Remodel, $7000 (late summer/ early fall)<br />Vacation/Travel, $3000 (now - Dec)<br />Misc Spending, $2000 (now - Dec)Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com2tag:blogger.com,1999:blog-3544227762728567625.post-60374818262992049942010-02-10T17:51:00.000-08:002010-02-10T18:15:33.514-08:00I've Been Avoiding this BlogIt's been a rough few weeks, our spending has been pretty high and we also found out that our income tax bill will likely be even more than I'd previously thought.<br /><br />We bought most of the supplies to finish out our current remodeling project, and that was $1300.<br /><br />I found out that some professional expenses ($470) isn't going to get reimbursed by my employer. Unfortunately, I was <a href="http://writeacheck.blogspot.com/2009/12/great-news-from-work.html">already told by my supervisor that it would be covered</a>, so we spent the money we had set aside for this (and a bit extra!) and used it to splurge on a big-screen TV. Had I known at the time that the company would take back their word, we would not have spent the money.<br /><br />Another $265 in professional fees won't be reimbursed until late summer, but I had to front it last month. I'm slightly annoyed at having been told that other things will be reimbursed/taken care of, only to have someone at a higher level reverse that decision (unfortunately, it's happened a few times since I've been at the company), but at this point I'm still pretty sure that this will eventually get reimbursed (unless I get laid off first). <div><br /></div><div>Because of these three things, the credit card that I use for regular monthly expenses/spending (and try to pay off each month) has a balance of around $2600 right now, FAR more than I'd like it to be. And I won't be able to pay off much over the next few months, because:<br /><br />We will owe roughly $1300 to the IRS, as it appears that our tax withholdings were screwed up when the "Making Work Pay" tax credit went into effect last spring. We're still not quite sure how this happened, because I declare "0" exemptions on my W-2 & Hubby declares "1" on his, but somehow BOTH employers reduced withholdings by the full amount for a married couple. I think we'll end up getting $400-500 back from the State, but the net total is that we'll end up owing a lot of money. <i>Have I mentioned before that situations like this are why I disagree with Dave Ramsey and think a $1000 baby emergency fund is not nearly enough? </i></div><div><br /></div><div>Our semiannual car insurance payment is due in April, and will likely be $800-900. We actually have two separate policies that renew within a couple weeks of each other. We probably should set aside $150/mo so that we have the full amount when the bills come, but instead we've always just chosen to cash-flow it. Instead of paying extra to our credit cards, we just shift the money to the bills instead. </div><div><br /></div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com1tag:blogger.com,1999:blog-3544227762728567625.post-72720731952267727402010-01-28T15:01:00.000-08:002010-01-28T15:19:44.242-08:00Income TaxesOur W-2's, 1099's, 1098's, and all the other tax forms have been arriving in the mailbox. We've finally received all of the major items, I think, and are just waiting on smaller stuff (like 1099 from last year's state refund & bank interest statements). <br /><br />The good news, we made $110k last year. <br /><br />The bad news, not all of that was actual income. Some of it was taxable fringe benefits, like tuition reimbursements. Some of it was from self-employment, which means that we have to pay an additional 15.3% tax PLUS our normal tax bracket. <br /><br />I ran though some very rough numbers, and I think we will end up owing money this year. The State of Michigan has some pretty hefty penalties and interest, so we always deliberately over-pay them... I think we will get around $400 back from them. We will almost certainly end up owing the IRS though. I've been doing our taxes for several years now, so I have a pretty good handle on what our expenses & deductions are, and I'm estimating we will owe around $700. So much for getting a few hundred dollars back.<br /><br />In all my estimating, I also realized that our charitable contributions are way less than we should probably be giving. Last year we gave only $100 in cash donations (with receipts). That's less than 1/10th of 1%. We've never tithed, and neither of us grew up in households that tithed... so we've discussed it and both don't feel comfortable giving away 10% of our income. Especially not now, when we have so much in debt (and such a lengthy & expensive wish list for things we'd eventually like to do, like buy a larger house with a basement, travel, save for kids' college). But I think we need to try a little harder... maybe get it up to at least 0.5% or 1%.Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com1tag:blogger.com,1999:blog-3544227762728567625.post-3928038541480597842010-01-25T16:41:00.000-08:002010-01-25T16:56:35.755-08:00The SwagBucks BandwagonI've finally jumped on the SwagBucks bandwagon. <div><br /></div><div>Basically, you sign up with them (just name, email address, and mailing address) and then use their site as a search engine (instead of Google or wherever else). Every few searches, they award you a SwagBuck. Once you earn enough, you redeem the SwagBucks for gift cards (to Amazon, Target, restaurants, etc.). They have various redemption limits, but for a typical month you can earn anywhere from $10-25 dollars in rewards. </div><div><br /></div><div>They have a variety of offers that will earn you additional SwagBucks (sign up for Netflix, open a credit card, buy stuff from their partners, etc.), but just using the search engine feature earns plenty and is the easiest. </div><div><br /></div><div><b>Upside</b>: It's free money. It's an easy way to make a little bit for doing what I already do. </div><div><br /></div><div><b>Downside</b>: The first few search hits are often sponsored links. Although they clearly say, "sponsored by..." next to the link, you do have to scroll past some of their paid advertisers. It doesn't bother me though. </div><div><br /></div><div>For any readers who use SwagBucks, I'd love to hear more about your experiences (good or bad), and any suggestions you might have. And if any of you don't, consider checking it out. The link below has my referral (I get bonus bucks when someone signs up using the referral link). </div><div><br /><a target="_top" href="http://swagbucks.com/refer/DishesToRiches"><img alt="Search & Win" title="Search & Win" border="0" src="http://prodegebanners.sitegrip.com/images/swagbucks-125x125.jpg"></a><br /></div><div><span class="Apple-style-span" style="font-family:'Lucida Grande', serif;font-size:100%;"><span class="Apple-style-span" style="font-size: 11px; white-space: pre-wrap;"><br /></span></span></div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com1tag:blogger.com,1999:blog-3544227762728567625.post-41377025987462226212010-01-20T15:59:00.000-08:002010-01-20T16:06:02.440-08:00Bad News from workMy boss called me into his office today, telling me that he had some bad news. He didn't shut the office door, so I knew it wasn't going to be too serious...<div><br /></div><div>But he told me that the VP of the company has denied my reimbursement request for the $469 review course I'm taking. It was previously approved by my immediate supervisor (after he double-checked with our Human Resources director about company protocol), and two other supervisors (each with a slightly higher level of authority) - and then when it went to the VP it was denied. </div><div><br /></div><div>I had been checking the mailbox daily for the $469 check, so now I need to redo our budget and figure out how to cover the shortage. Most likely, I will carry a balance on the credit card that the class was charged, and will hopefully pay it off in late February or March instead. </div>Just Write A Checkhttp://www.blogger.com/profile/06554543609989144371noreply@blogger.com1